PAGE 29
Insurance Commissioner Jim Donelon has ordered GeoVera Specialty Insurance Company (GeoVera) to stop non-renewing Louisiana homeowners policies in violation of state law. In a cease and desist order issued Tuesday, Commissioner Donelon told the California surplus lines company that it was breaking Louisiana laws that say that insurers cannot non-renew policyholders who have been customers for more than three years except in very limited circumstances. The Commissioner of Insurance has the authority to issue a wide variety of penalties to regulate insurance in the public interest as outlined in the Louisiana Insurance Code. He can refuse to renew, suspend, or revoke the certificate of authority or license of an insurer, or in lieu of a suspension or revocation, he can levy a fine of up to $1,000 for each violation up to $100,000 in aggregate. GeoVera has 30 days to appeal the cease and desist order. The action emanates from a consumer complaint to the Louisiana Department of Insurance (LDI) by a GeoVera customer who had filed a claim over damage from Hurricane Delta. The policyholder received a nonrenewal notice from GeoVera, and the company said it was no longer offering homeowners coverage in certain zip codes.
LOUISIANAAGENT
